News Major South African Bank FNB Closes Cryptocurrency Business Accounts

Major South African Bank FNB Closes Cryptocurrency Business Accounts


- Advertisment -

Major South African Bank FNB Closes Cryptocurrency Business AccountsAs of March 2020, “Top Four” South African Bank FNB will no longer provide business banking to, “(cryptocurrency) trading platforms and intermediaries that trade in digital money,” City Press reports.

Affected entities include crypto exchanges Luno, VALR, ICE3X and their intermediaries.

“Our decision was made after we looked at the potential risks associated with these platforms, especially because they are not regulated at present,” an FNB representative told the outlet.

Luno boss Marius Reitz tried to remain upbeat. “It is business as usual,” he said.

Reitz promised Luno customers that it will have other banking in place by Q2 2020:

“We have arrangements with other banks in place, so deposits and withdrawals can still be done on the Luno platform.”

Farzam Ehsani, co-founder and CEO of VALR, reportedly told listeners of Radio 702’s The Money Show this week that the FNB’s decision was, “a big disappointment,” and said he could not understand why the bank would want to end services to, “(the) most innovative industry in the last couple of decades.”

According to City News, “(Luno) did not elaborate on its reference to potential risks, but there is global concern that digital money – which can serve as a substitute for global currencies – can be used to finance terrorism, drug trafficking and assassinations, or for other nefarious purposes such as tax evasion and money laundering.”

Absa Bank spokesperson Carli Cooke told City News that it currently serves no cryptocurrency trading or issuance entities or intermediaries. “However, Absa’s clients who trade in digital money via their debit and credit cards are free to continue doing so,” she said.

Nedbank’s head of compliance, Anna Isaac, said her bank is currently weighing policy with regards to cryptocurrency trading platforms.

City News notes that cryptocurrencies are, “banned in countries such as Ecuador, Bolivia, Egypt and Morocco, while Singapore and South Korea have begun to regulate it more strictly.”

In August, British banking giant Barclay’s abruptly ended its relationship with the American cryptocurrency trading platform Coinbase, and UK “challenger bank” Clearbank stepped in.



Please enter your comment!
Please enter your name here

Latest news

GoCrypto presents truly contactless payments with a simple solution for merchants and buyers

7 April 2020 — The recent events have rapidly changed the way we live, including our shopping...

Bitcoin SV has found a new niche in the gaming industry

Gaming companies and online casinos are increasingly paying attention to cryptocurrencies as a possible payment tool. Several...

Why could GLBrain become a great solution to receive support during the crisis?

To support smaller and medium-sized businesses during the ongoing crisis, GLBrain offers services cost-free for all Austrians....

Make Fast and Secure Trades Using is a Cryptocurrency trading platform that allows users to buy and sell their Cryptocurrency in a...
- Advertisement -Major South African Bank FNB Closes Cryptocurrency Business Accounts

Network Security Using Cryptography: Everything you need to know

This article will describe what is Network Security Using Cryptography and everything you need to know before...

Mercuriex Cryptocurrency Exchange Launches New Utility Token, SURF

MercuriEx Cryptocurrency Exchange, originally developed in 2017, came under new ownership in December 2019. Since taking over the exchange,...

Must read

- Advertisement -

You might also likeRELATED
Recommended to you